Dhaka stocks skyrocket for 3rd day as bank shares shine

Dhaka stocks gained on Wednesday, extending the surge to the third day, with the key index of Dhaka Stock Exchange crossing 5,300-points mark as investors went for buying financial stocks heavily.The DSEX rose 1.07 per cent, or 56.48 points, to close at 5,333.87 points, the highest after 5,334.03 points on October 12, 2014.Benchmark DSEX increased 174 points in just three trading sessions, starting from Monday, following prime minister Sheikh Hasina’s pledge to continue her government’s all-out support for the development of the stock market.‘The present government would continue its all-out support for the development of the stock market which would be a “dependable source” of long-term funding in building a developed Bangladesh,’ Hasina said on Sunday.Stockbrokers said that although the market observed a bit profit-booking share sales in the first half an hour of the trading session on Wednesday, it remained bullish during rest of the trading session as the majority of the investors remained optimistic about the market prospect.As a result of heavy purchasing by investors, prices of around two-third of the traded scrips advanced on the trading session, they said.Non-bank financial institutions and banks got investors’ special attention on the day, resulting in 3.17 per cent and 3.07 per cent rise in share prices on an average.Year-end earnings announcements-centric fresh positioning on those scrips was the main reason for the investors’ focus on those scrips, stockbrokers said.Turnover on the bourse increased to Tk 1,704.55 crore, the fresh five-and-a-half-years high, compared with that of Tk 1,696.94 crore in the previous trading session.Asked about the gradual rise in turnover and share prices, DSE director Shakil Rizvi told New Age on Wednesday that share purchasing by the institutional and foreign investors increased significantly in recent times as the investors were injecting funds to avail the opportunity to buy cheap prices of shares after stock prices had come down to a very lucrative level in the last couple of years.As prices of shares have increased in recent months due to an increased participation of institutional and foreign investors, general investors also started to inject fresh funds in an expectation of further rise in share prices, he said.Low interest rates for banks’ deposit products also diverted another section of investors to the capital market, Shakil said.Of the 326 companies and mutual funds traded on Wednesday, 194 advanced, 117 declined and 15 remained unchanged.DS30, the blue-chip index of the DSE, rose by 0.72 per cent, or 13.70 points, to close at 1,908.36 points.The Shariah index, DSES, finished at 1,245.85 points, adding 0.43 per cent or 5.43 points.Beximco led the turnover chart with its shares worth Tk 91.66 crore changing hands.IFAD Autos, Aman Feed, Dhaka Electric Supply Company, RSRM Steels, National Bank, Appollo Ispat Complex, LankaBangla Finance, Doreen Power Generation and Systems and Premier Bank were the other turnover leaders.Premier Bank gained the most on the day, adding 9.90 per cent, while Aramit Cement was the worst loser, shedding 4.77 per cent.